When a company issues a bond at a discount:

	the company will pay more than the face amount of the bond at its maturity.
	the company's interest expense will be less than the interest paid each year.
	the company will pay less than the face amount of the bond at its maturity.
	the company's interest expense will be more than the interest paid each year.

The financial leverage characteristic of long-term debt results in:

	the deductibility, for income tax purposes, of dividends to stockholders.
	a magnification of ROE relative to what it would be without long-term debt.
	a magnification of ROI relative to what it would be without long-term debt.
	a reduction of the risk that creditors will not be paid.

Which of the following is true regarding bond discounts and/or premiums?

	Bond discount is amortized but bond premium is not.
	Bond premium is amortized but bond discount is not.
	Neither bond discount nor premium is amortized.
	Both bond discount and premium are amortized.